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Pandora Strikes Two Licensing Deals on Day of Rdio Shut-Down

Pandora took another step towards launching a full-blown Spotify competitor Tuesday: The music service announced two multi-year licensing deals with ASCAP and BMI Tuesday that together cover the performance rights for more than 20 million musical works.

Pandora had been in a royalty dispute with both ASCAP and BMI, with mixed outcomes for the company: A judge sided with BMI and against Pandora, but a separate appellate court decision came down in favor of Pandora and against ASCAP’s request for higher royalty rates. As part of the new deals, Pandora has agreed to withdraw its appeal against the BMI decision.

Specific terms of the agreements weren’t disclosed, but a release sent out by Pandora mentions the “ability to add new flexibility to the company’s product offering over time” — a reference to the music subscription service Pandora has said it is going to launch later in 2016.

The announcement coincides with the closure of Rdio, which is set to cease all operations Tuesday afternoon. Pandora acquired Rdio’s assets, and extended job offers to around 100 staffers, for $75 million in cash in November.

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